Supply chains are the lifeblood of economies, sustaining populations with a constant flow of needed goods and services. When those economies experience severe, rapid fluctuation, supply chain managers must be prepared with nimble, data-driven solutions.
How does your enterprise insulate itself from the volatility gripping the entire world of post-COVID-19 supply chain management? There are three primary areas in which you can bolster your operation:
- Creating an agile system that adapts to unpredictable conditions
- Optimizing efficiency through effective data usage
- Keeping costs low to avoid crippling your organization’s finances
You can reinforce the strength of your supply chain with the right moves. These actions will prove increasingly valuable as supply chain uncertainty persists.
The “Great Supply Chain Redesign”
Supply chain management is transforming worldwide. However, the shift is not toward a global approach but a localized one, and has been occurring since even before the pandemic. It’s being called the “Great Supply Chain Redesign,” and it involves a lot more than re-shoring and freight lane restructuring. The effort is concentrated on building end-to-end supply chains as close as possible to the markets they serve, and the results could change manufacturing for good.
Heightened restrictions, labor shortages, and severe bottlenecks have created a climate of anxiety and doubt about how people to transport goods from origin to destination. Most notably, we are seeing that some materials are no longer available for organizations that wait until the very last minute to make their purchases. Buying in bulk and strategic sourcing is becoming the norm so that you have more stock available for exactly when you need it, regardless of supply chain delays.
If the pandemic has made nothing else clear, it's that the wheels have come off traditional just-in-time and vendor-managed-inventory modes of supply chain management. So, suppliers and carriers need new systems to help manage their logistics and improve their agility.
A data-first approach to supply chain management
Effective supply chain management is born of data, and not just vast quantities of data. Having quick access to the most relevant, high-quality data is crucial to maintaining trust with your customers. Staying multiple steps ahead of potential delays and inefficiencies will help ensure a frictionless experience from order to delivery.
“Logistics management is in the midst of a technological revolution,” according to Daniel Rust, associate professor of transportation and logistics in the School of Business and Economics at the University of Wisconsin-Superior. “It’s all about the data. How to capture it, leverage it, use it to your full advantage.” Insights gained from your data have to be sharp and timely, which is why shippers need reliable partners so they can maximize data effectiveness and prevent delays, excess cost and customer availability issues.
Streamlining your system to reduce waste
When billions of dollars’ worth of cargo is halted offshore, waiting to be unloaded, trucked, and finally delivered, costs skyrocket. Very few businesses can afford to take such blows to their bottom line. As a result, countless operations have shuttered in the past couple years, unable to survive the economic shakeup. With a truck driver shortage added to the mix, it is more important now than ever to keep your supply chain management costs low.
To find out more, download this helpful guide that shows you how to lower supply chain costs and boost your bottom line.
Related: Ready or not, the supply chain transformation is underway